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Solar Weather Dynamics and the US Economy: A Comprehensive GVAR Perspective

Author

Listed:
  • Theodoros Daglis

    (University of the Aegean
    Agricultural University of Athens
    Technical University of Crete)

  • Konstantinos N. Konstantakis

    (National Technical University of Athens
    Hellenic Open University
    Hellenic Air Force)

  • Panos Xidonas

    (ESSCA École de Management)

  • Panayotis G. Michaelides

    (National Technical University of Athens
    Hellenic Open University)

  • Areistidis Samitas

    (National and Kapodistrian University of Athens)

Abstract

This work examines the direct impact of solar events on the financial sector of the United States, while also investigating their indirect effects on other sectors of the US economy. The study introduces a cutting-edge methodology based on the Global Vector Autoregressive (GVAR) model, utilizing a comprehensive dataset, to estimate indirect global impulse response functions. By putting forward this approach, the study highlights the significant contribution of solar events on financial and insurance activities, establishing a clear connection to the broader US economy. Moreover, it quantifies and demonstrates the direct and indirect influence of solar events on the US economy, paving the way for future in-depth investigations in this field.

Suggested Citation

  • Theodoros Daglis & Konstantinos N. Konstantakis & Panos Xidonas & Panayotis G. Michaelides & Areistidis Samitas, 2024. "Solar Weather Dynamics and the US Economy: A Comprehensive GVAR Perspective," Review of Quantitative Finance and Accounting, Springer, vol. 63(3), pages 955-977, October.
    • Handle: RePEc:kap:rqfnac:v:63:y:2024:i:3:d:10.1007_s11156-024-01282-4
    DOI: 10.1007/s11156-024-01282-4
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    More about this item

    Keywords

    GVAR; GIRF; Finance; Insurance; Indirect spillover; Solar events;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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